Pawnshop Industry

Introduction
It is said that Pawnbroking is the oldest source of credit. (Caskey, 1994) Pawnshop loans are small, short-term, collateralized loans typically used by low-income consumers. Despite their small principal, however, pawnshop loans are an important tool that many customers use to manage their monthly finances during financial shortfalls. (Carter and Skiba, 2012)
In the Philippines, Pawnshop is one of the financial service providers (FSP) that are helping to increase the access to financial services of underserved and unserved. For many Filipinos, pawning is the most convenient way to raise money, easier than securing a bank loan. In the Bangko Sentral ng Pilipinas Report on the State of the Financial Inclusion in the Philippines in 2011, the Banking sector is accounted for more than 80 percent of the total resources of the financial system. This means that the 20 percent are shared by other service providers such as pawnshops, money changers, remittance agents and FX dealers. Some municipalities in the Philippines have no banking presence but have access to pawnshops. While pawnbroking is the main business activity of pawnshops, nowadays many pawnshops are engaging into other auxiliary businesses such as money changing, remittance facilitation, foreign exchange dealership, and bills payment facilitation. Moreover, few pawnshops are offering cash in-cash out centers and offer mobile banking services.
Financial economists have produced a large number of theoretical studies and empirical studies on mainstream banking services, but alternative financial services, and pawnbroking in particular, are hardly touched on in the literature (Carter and Skiba, 2012). With the growing number of pawnshops in the Philippines and the increasing activities and opportunities for pawnshop business, this paper seeks to determine some determinant characteristics of where…...

...Below is a listing of potential Industries and a few examples of businesses and jobs that can be group under each industry. I will take one or two examples and try to explain how it will all work. The Fishing Industry as an example: The old ways of fishing cannot compete in the Global industry today, hence a need for a new and improve means of doing business.
Communities will have to designate a portion of the water body to build a fishing port. A
fishing harbor will provide a means of docking and undocking, building of boats and other marine lives.
Fishing Boats with more sophisticated navigational systems to locate fishes and the ones
that can venture into open waters should be built; Canoes just cannot do the job today.
Fish Farming must be considered to ensure a year round supply of fish to fuel the
industry. Inland fishing should also be looked at.
Research Centers must be established to keep the industry at par with new technologies.
Students of Universities can engage in Marine Biology and/or Aquarium Science in studying the ocean and its inhabitants and how to protect the environment.
Fish Centers with packaging and preservation capabilities should also be built to help
control the prices better. A constant source of market must be available to further enhance the industry.
Small private businesses that can support this industry are: Restaurants, Grocery Stores,
Barbering Shops, Auto mechanics, Law Firms, Communication Centers, Accounting......

...2012-2013
PAWNSHOPS AND BEHAVIORAL ECONOMICS
193
PAWNSHOPS, BEHAVIORAL ECONOMICS, AND SELF-REGULATION SUSAN PAYNE CARTER* AND PAIGE MARTA SKIBA** I. Introduction
Pawnbroking is the oldest source of credit.1 There is growing public interest in day-to-day pawnbroking operations, as evidenced by the popularity of reality shows such as “Pawn Stars” and “Hardcore Pawn.”2 Television viewers’ curiosity about an old credit institution may be due to the fact that 7% of all U.S. households have used pawn credit.3 Although pawnshops predate biblical times, researchers know surprisingly little about this ancient form of banking and its customers.4 We fill this gap by documenting detailed information on pawnshop loan repayment and default, and by discussing how pawnshop borrowers’ behavior is consistent with various behavioral economics phenomena. Pawnshop loans are small, short-term, collateralized loans typically used by low-income consumers. The borrower leaves a possession, or “pledge,” as collateral in exchange for a loan, typically of $75–$100.5 Interest rates vary by state and range from 2
Assistant Professor, Office of Economic and Manpower Analysis, United States Military Academy. susan.carter@usma.edu. The views expressed in this paper do not necessarily represent those of the United States Military Academy, the United States Army, or the Department of Defense. ** Associate Professor of Law, Vanderbilt......

...CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Pawnshops have been around in one form or another for the past 3,000 years. They offer services similar to those of modern banking institutions including loans, consignments, and storage. A good pawn broker buys items for a reasonable price and sells them at a discount. The pawn industry is about making money, and that means repeat business and reasonable dealings.
A good pawnshop will carry a variety of items including jewelry, tools, antiques, furniture, knives, guns, crossbows, camping gear, and everything and anything you could imagine being of value and sellable. Some pawn shops even buy and sell cars, motorcycles, and aircraft.
In the Philippines Pawnshop Operation is guided/ covered by Presidential Decree No. 114 Sec. 1-2 as:
This decree may be cited as the Pawnshop Regulation Act, which stipulated according to that: “ It is hereby declared the policy of the State to regulate the establishment of pawnshops and to place their operation on a sound and stable basis to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business...”
The word "pawn" comes from the Latin word "pignus," which means to pledge. When someone has an item of worth on which they would like to receive a monetary loan, they take......

...factors that affect the success Of two selected pawnshops in metro manila: an assessment
A Thesis Proposal
Presented to
The Faculty of the Business Administration,
University of the East – Manila
In Partial Fulfillment for the Degree of
Bachelor of Science in Business Administration
Major in Financial Management
Submitted by
Juatco, Martian Lanz Gary A.
Mingaracal, Alvin M.
Pediengco, Alelie Krizza D.
Perey, Christine Mae R.
Summer
S.Y. 2014- 2015
CHAPTER I
The Problem and Its Background
Introduction
Pawnshops are in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. A "pawn transaction" does not include the pledge to, or the purchase by, a pawnbroker of real or personal property from a customer followed by the sale or the leasing of that property back to the customer in the same or a related transaction (definitions.uslegal).
State and local laws regulate pawnshops. Pawnshops may be required to be licensed and regulations often require certain standards of record keeping and pawnshop fees charges to be followed. Regulations may require a minimum age of persons seeking to pawn items and may prevent the offering of insurance for pawned items. Pawnshops may also be required to consult police......

...By 1812 AD there were at least 20, 000 pawnshops in China. In the 1970’s, the Chairman Mao and his Red Army eliminated all the pawnshops along with other private enterprises. Recently, pawnshops started making a comeback, filling the gap in their national banking system, lending money to people who earn enough to have bank accounts. Pawnshops were so respected by the Chinese population that they named, Kwan Tai, one of their Gods, the “Patron God of Pawnshops”.
The word “Pawn” comes from the word “PATINUM” which means cloth or clothing. During the early centuries, in Europe, when people borrowed money, the collateral they used was their clothes. Pawn broking was in existence in the ancient Roman and Grecian civilizations. The first formal pawnshop businesses were in China. They originated in Buddhist monasteries, where the interest was usually at 3% or less.
Pawn broking is one of the oldest credit means in the Philippines. Many people believed that the Spanish friars have introduced it when Philippines was stilled ruled by the Spaniards.
For many Filipinos, pawning jewelry at a neighborhood pawnshop has been most common and quickest way to address an urgent need for relatively small amounts of cash. Filipinos patronize pawnshops as one of the alternative source of credit and with the increasing numbers of pawners people should be aware of the pawn broking transactions, auction sale and some pertinent information that will reduce the risk of pawning and buying of......

...that customers and society value.
Outputs are specific things that the companies deliver to (help to) achieve
Those outcomes.
2. DIFFERENTIAL PRICING
Some firms charge different prices for the same product in different zones / areas of the market. Sometimes, the differentiation in pricing is made on the basis of customer class rather than marketing territory. Sometimes, the differentiation is on the basis of volume of purchase. Differentiation on the basis of volume is more common than differentiation based on customer class in marketing territory.
3. GOING RATE OR “FOLLOW THE CROWD”
In this method, the firm prices its products at the same level as that of the competition. This method assumes that there will be no price wars within the industry. This is a method commonly used in an oligopolistic market. Despite its advantage of preventing price wars, the method suffers from serious limitations. The first is that, it is not necessarily true that all firms or the leader firm is operating efficiently. In case, it is not, it will mean that the follower firm will also adopt a price level which reflects leader’s inefficiency rather than the firm’s efficiency. Besides, it is not always true that a decision taken in collective wisdom is the best. It may certainly not be so from the customer’s point of view.
4. DEMAND / MARKET BASED PRICING
The following methods belong to the category of demand / market based pricing:
* ‘What The Traffic Can Bear’ Pricing
* Skimming Pricing
......

...Has the question “How Does the Entertainment Industry have an Effect on Society?” ever crossed your mind? Well I believe that this question has appeared in so many people’s life, especially parents of children and teens in today society. This question raises so many flags in the mind of people today. However, one way that it affects society is that it gives off the impression that you can have freedom of speech in a negative way. Secondly it promotes that violence is the way to settle a situation. Lastly the industry promotes the use of illegal drugs is not a bad entity. Not only will we will discuss the negative that the entertainment industry promotes, we will also state positive ways that can help the industry affect society.
Why do you believe that the freedom of speech has an effect on society? It has an effect because to many people believe that they have the right to go around threatening and abusing the amendment that was freely given to them. Furthermore, the entertainment industry has promoted to the world that it’s okay to use foul language to one another. What most people don’t know or understand is that by using negative slurs you’re destroying the person instead of lifting them up. We need more positivity in the entertainment industry rather than negativity.
Why is violence such a common act in generations of today’s society? There are so many people in each generation that grew up not knowing one or even both of their parents. Not having your mother......

...0000000232.RTF
THESIS ABSTRACT
Title : THE PAWNSHOP INDUSTRY IN METRO LEGAZPI
Author : SURATOS, EMMA A.
Degree : ?
Year : 2000
Location : AQ
This study looked into the pawnshop industry in Metro Legazpi in order to recommend measures to improve its operations.
Specifically, it answered the following questions:
1. What is the profile of pawnshop industry in Metro Legazpi?
2. What is the current state of operation of the pawnshop industry in Metro Legazpi?
3. What are the problems encountered by the owners/operators and the consequent solutions offered to address them?
Scope and Coverage
The study is concentrated on the operations of all the 26 pawnshops fully operating in Metro Legazpi. By counting the head office and branches as one, the 26 offices were consolidated into 12. Three new pawnshops that have complied with the requirements but are still waiting for their registration certificates brought the total respondents to fifteen.
Registered pawnshops in province of Albay but located outside Metro Legazpi were not included in the list of respondents. Financial condition, management practices, and the clients' perspective were likewise not considered in the study.
Sources of Data
The primary source of data was the information generated through the survey questionnaires distributed to the owners and staff of the different pawnshops in Metro Legazpi. The secondary source of data came from the files and records......

...What is a pawnshop?
The pawnshop, consist of many intriguing parts of the entrepreneurial spirit, finance, sales, and money. The main reason a pawn shop is in existence is for helping the people who could not otherwise find or secure a loan for their needs at the time. Banks will loan money, but people with collateral that is not substantial or credit that is poor stand little chance of getting a bank loan, or securing a small cash loan for their needs at the time, this is where a pawn shop comes into play, the shop will loan based on the item being used for collateral and the sum of money needed, generally the loan period will vary based on the state that regulates the pawn shop. The customer has the choice of either selling the item or securing the loan for a period with interest being paid for the amount of time used, if the customer decides not to pick up the loan, the shop will then sell the item for an amount based on a used marketable price. The pawn shops deal in a win-win of high finance, the loans being given are high risk at times therefore the usury rate on the loans are generally at high interest amounts. Once the collateral has been fore-fitted by the customer it becomes the property of the pawnshop to sell to recoup their loan back plus a profit on top of the lost interest and this creates the revenue stream from sales....

...CONSTRUCTION INDUSTRY
Definition:
Construction in general is the process of building or assembling of architecture. The construction sector is responsible for building new houses, apartments, factories, offices and schools. It also builds roads, bridges, ports, railroads, sewers and tunnels, among many other things. In addition, it maintains and repairs all of those structures and produces the basic materials such as concrete that are used to make them. The industry’s significance is due not only to the fact that it provides the buildings and infrastructure on which virtually every other sector depends, but to the fact that it is such a sizeable sector in its own right. The construction industry is Europe’s largest industrial employer, accounting for about seven percent of total employment, and in the Europe, the US and Japan combined, it employs more than 40 million people. Among all Organization for Economic Co-operation and Development (OECD) countries, the construction industry accounts for an average of 6.47 percent of GDP.
History since Industrial Revolution:
There were many factors that revolutionized the construction industry after the industrial revolution. The invention of Portland cement, glass, reinforced concrete, architectural glasses, cranes etc. has brought in a huge leap in the technology.
Cement:
Portland cement was developed from natural cements made in Britain in the early part of the nineteenth century, and its name is derived......

...The Indian cement industry is the 2nd largest market after China. It had a total capacity of about 300 m tons (MT) as of financial year ended 2010-11. Consolidation has taken place with the top three players alone controlling almost 35% of the capacity. However, the balance capacity still remains quite fragmented.
Despite the fact that the Indian cement industry has grown at a commendable rate in the last decade, registering a growth of nearly 9% to 10%, the per capita consumption still remains substantially poor when compared with the world average. While China registered the highest per capita cement consumption in 2010 of about 1,380 kg, India stood much lower at 230 kg. This underlines the tremendous scope for growth in the Indian cement industry in the long term.
Cement, being a bulk commodity, is a freight intensive industry and transporting it over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry divided into five main regions viz. north, south, west, east and the central region. With capacity addition taking place at a faster rate as compared to demand, prices have remained southbound, especially in the last one year. Nevertheless, considering the government’s thrust on infrastructure, long-term demand remains intact.
Given the high potential for growth, quite a few foreign transnational companies have displayed their interest in the Indian markets. Already, while companies like Lafarge,......